Friday, February 1, 2008

Being Dollar'ed' $$$$$$$ - Part 2

Many months passed after the world market was affected by US Sub prime crisis. Many small companies closed at the start of this crisis, many selled their mortgages but those who resisted all these are making huge profits in their midcap and small sectors. Here is such an example, John is a diary farmer in US. He's making more money than he did before the subprime crisis. You may wonder that how can this guy is becoming rich when the whole world is chanting mantras for Dollar appreciation and the rate cuts made by Federal Reserve is maintaing the US markets to stay at reasonable mark. Now coming back to John's story, John is able to sell more milk from his diary farm. This happened because of Dollar depreciation, which resulted in ending up of many US products in India, China and other countries. Thus the Dollar depriciation resulted in demand for many US products at the same time many large companies are losing millions due to this Dollar depreciation.

Let's pay our attention towards Indian market. There is a fall happening in indian markets this is due to solidity in markets because the Reliance IPO has dominated the money gathering from the market and there is little money left to switch from one share to another. Thus this fall may continue for three weeks or more. The FED may boost the markets by cutting rates but again markets will end low for next one or two weeks. This is a very good time to buy the shares.

Moral of this post is RESIST TO WIN !!!!!!!!

AddThis Social Bookmark Button
RSS Digg this